How to Maximize the Value of Property Renovations

Most homeowners assume that remodelling their kitchen can significantly increase the value of their home, but fewer homeowners recognize that the increase may depend on the degree of remodelling and the costs involved.

Cost does not necessarily equal value. “Not every renovation will pay off at closing,” says Richard Powers, MAI, SRA, President of the Appraisal Institute. Powers offers a few dos and don’ts of home improvement that may help consumers sell their homes more or more quickly:

• Don’t over-improve. Look for what’s standard in the neighbourhood. Adding a deck might seem like a good idea but if no one else in the neighbourhood has one, you may not see a return on investment.

• Do invest in basic upgrades. Fresh paint (stick to neutral colours), new fixtures, flooring and lighting in kitchens and bathrooms can pay dividends.

• Do consider adding an extra bathroom. Homeowners can often recoup the extra cost of a bathroom at closing because of the appeal that extra bathrooms have for homebuyers.

• Forgo the swimming pool. Pools generally turn off more people than they attract because of the perceived upkeep and insurance costs and the fear of liability.

• Enjoy your renovation. Why wait until you are ready to move to have that new kitchen? Generally, a new kitchen will hold its value for one or two years.

• On all these projects: Those that add square footage to bring a house up to-but not beyond-community norms generally pay off the most.

To help you get value out of your home improvements, consider consulting with a designated member of the Appraisal Institute. Those members with an SRA designation have experience in residential valuation. Those with MAI or SRPA designations are knowledgeable about commercial property.

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When discussing home or business renovation, a professional real estate appraiser can advise you on how different improvements can influence property value. If the renovation is considered major, the appraiser can complete a feasibility study-an analysis of the property, the cost of rehabilitation and an estimate of the property’s value after improvement.

Finance for Renovations: How to Find the Funding for Your Dream Home

Renovation financing is a good way to fund your dream home’s upkeep, and maintenance and give it that great new look.

Renovation loans are available in your premises are in a state of disrepair, are unlivable, need up-gradation or if you want to just put in new kitchens, bathrooms etc.

Very simply, often times people will hold off on getting the home renovation they need simply because they don’t believe they can afford it. however, when you realize all the financing options available to you, you will know that it doesn’t have to be nearly as expensive as you think.

Even drastic improvements like completely removing all the built structure and rebuilding it using existing foundations can also be sometimes funded by Renovation financing. Although financing a home can be supported by your personal finances, sometimes it does make sense to finance the project especially if your home itself can finance the renovation.

How? Simply because if the price of your home has exceeded the mortgage on it you are sitting on top of what is called home equity.

Home equity can be an excellent source for financing the renovation of your house. Home improvements financed by credit cards may be a possibility but getting a loan based on your home equity will get you a way lower rate of interest.

Since loans offer structured repayments over a period of time, they are also easier to pay off than your increasing credit card debt. So avoid the temptation to fund your home renovation using your credit card unless you can pay off the balance quite soon.

A good practice before taking a home improvement loan is to compare rates from various lenders. This can give you a fair bit of idea about the nature of the market and help you get a good deal.

While taking a home improvement loan, you should make a list of possible expenses beforehand and discuss them with a friend, your contractor or a knowledgeable person to arrive at a correct estimate. This will help you while you are going about renovation financing.

It’s also a good idea to read all financial documents regarding your home loans carefully. Do not ever sign any document that you do not comprehend fully.

The implications can be severe. Getting your home renovated does not have to be a huge back-breaking financial task.

Just use a bit of ingenuity and your home can sometimes just pay for the improvements on its own. Renovation financing is something that everyone who is thinking of redoing their home should seriously consider. Don’t let a lack of finances stop you from getting the home of your dreams.

The most important part, as stated above, is to simply do your research and find out which renovation finance company will give you the best rates, and then simply go with them. Also, a great way to do this, once you’ve found the company that will give the best rates, is to read reviews about that particular company on the internet. This way, you don’t have to find out the hard way whether or not that company is reliable; you can simply draw on others’ past experiences.